Studies were conducted to determine the effects of lysocellin on growth performance and metabolism of steers fed forage-based diets. Treatments in all experiments consisted of 1) control, 2) 100 mg lysocellin/d, 3) 200 mg lysocellin/d and 4) 200 mg monensin/d. In each of two 90-d performance studies, 24 Hereford steers were individually fed greenchop (fungus-free tall fescue and Coastal and Tifton-44 bermudagrass) ad libitum and .91 kg/d of a corn-trace mineral salt supplement. In Exp. 1, tall fescue was fed from d 1 to 45 and bermudagrass from d 46 to 90. Bermudagrass was offered during d 1 to 45 and tall fescue during d 46 to 90 in Exp. 2. Lysocellin improved gain (Exp. 1, P less than .01) and feed conversion (Exp. 1 and 2 combined, P less than .05), decreased total VFA concentrations (P less than .05), increased molar proportions of propionate, isobutyrate and isovalerate (P less than .01), decreased molar proportions of acetate and butyrate (P less than .01) and lowered acetate:propionate (P less than .01). Two metabolism studies involving a total of 16 Hereford steers were conducted. Steers were fed tall fescue greenchop and .91 kg/d supplement for a 34-d adjustment period followed by a 5-d total collection period. Lysocellin increased N digestibility (P less than .01) and N retention (P less than .06) but did not (P greater than .05) affect DM, NDF or ADF digestibility. Data indicate that lysocellin results in major alterations in ruminal fermentation and can increase growth performance and N retention in steers fed forage-based diets.